The Frightening Reality Of Gold Disappearing From The West

"...There is a divergence between the availability of physical gold and paper gold with deliverable Comex inventories dropping from three million ounces to 700,000 ounces.  The plunge in the gold price was caused by extraordinary large sell orders dumped on a coordinated basis at least a half dozen times.  The dramatic drop in delivered gold has caused more than 800 tonnes of redemption from the gold ETFs, resulting in a dramatic shift with physical gold ending up in Chinese vaults.  The gold cupboards of the West are empty and markets are vulnerable to a huge short covering rally.

Gold climbed a whopping 550 percent in a twelve year run from the August 1999 low at $253 an ounce to the peak at $1,941 in September 2011 spurred by the financial crisis and quantitative easing. Since the peak, gold has fallen 37 percent or 26 percent this year, retesting the lows.  Gold trading was interrupted half a dozen times as large futures contracts were dumped on the market raising questions that these leveraged bets were really manipulation.  The trading action, however has caused a shortage of physical bullion. Inventory stockpiles on Comex are at record lows such that paper claims per ounce of registered gold are at a whopping 70 times.  There is simply not enough gold to satisfy these claims.  As such we continue to believe $2,000 an ounce is only an interim objective and gold’s twelve year bull run is not over.  This year is the pause that refreshes.”

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/12/17_The_Frightening_Reality_Of_Gold_Disappearing_From_The_West.html